President Donald Trump's unfolding trade policy may curb U.S. productivity and possibly require higher interest rates to contain inflation in a less efficient economy, Federal Reserve governor Lisa Cook said on Friday.

Key Takeaways Federal Reserve officials speaking Friday emphasized the risks that tariffs imposed by the Trump administration will stoke inflation.The Fed, which manages the nation's monetary policy with the goal of keeping inflation and unemployment in check,

Trump's "large increases in tariffs," if "sustained," are "likely to generate a rise in inflation, a slowdown in economic growth and a rise in unemployment," Fed Ch